Coogan v. Parker
Coogan v. Parker
Opinion of the Court
The opinion of tho Court was delivered by
It is important, before considering the question peculiar to the present case, to ascertain the state of the law of South Carolina as to the liability of a tenant for years to pay rent after the destruction of the subject-matter of the lease, from causes beyond his control. This question will be looked at apart from the effect of the covenants usually found in such leases, other than the covenant to pay rent.
It has been considered that Bayley vs. Lawrence, (1 Bay, 499,) and Ripley vs. Wightman, (4 McC., 447,) have introduced into this State a doctrine at variance with the common law, as expounded by tho adjudicated cases in England, and the leading States of this country, following the common law. So strong has this impression of the state of our local law been abroad, that it has been said that, in this respect, South Carolina follows the doctrines of the civil law. When it is considered that, both by custom and statute law, the rules and principles of the common law have been made the foim--dation of our judicial system, it will be apparent that strong necessity should exist before we ascribe to tho Courts that decided those cases, an intention to introduce into this State principles and rules foreign to our usages and system of laws. It is apprehended that a clear idea of the effect of these decisions, and a review of the state of the common law, on this subject, will make it apparent that no such necessity exists.
The doctrine acted upon by the Courts of this State may be stated as follows: that where there isa substantial destruction of the subject-matter, out of which rent is reserved in a lease for years, by an act of God, or of public enemies, the tenant may elect to rescind, and on surrendering all benefit thereunder shall be discharged from the payment of rent.
Bayley vs. Lawrence, (1 Bay, 499,) is the first reported case in which this principle was applied. The report of that case is exceedingly brief, and it appears, by the Reporter’s note, that it was omitted in the publication of the cases of 1792. Why this omission occurred, whether as the result of accident, or because the report did not sufficiently present the ground of the judgment of the Court, is .not explained. That was an action of covenant for rent, in arrear, brought on a lease of a shipyard, at Hilton Head, for ten years, dated the 6th day of June, 1774. The defence was, that the defendant'was driven off by the casualties of war and deprived of the enjoyment. It was resolved, per Curiam, “ that the defendant
This doctrine -was very fully drawn out in Ripley vs. Wightman, (4 McC., 447.) Colcoek, J., says : “If a man lease a house for a year, and during the term it is rendered untenantable by a storm, the rent ought to be apportioned according-to the time it was occupied.” Ho places this upon the ground that “the title to the rent is founded on the presunjpticn that the tenant enjoys the thing during the contract.” The application of this privilege to the facts
The next case to be noticed was Bacolt vs. Parnell, (2 Bail., 424,) which was decided on the authority of Ripley vs. Wightman. Q’Neall, J., says of Ripley vs. Wightman: “In that case, the act of God was held a rescission of the contract.” He applied the same rule in the case before the Court, holding that a contract for the hiring of a slave was ended by the death of the slave, that being the act of God. This same doctrine was again sanctioned in Corley vs. Kleckley, (Dud., 35,) and in Wilder vs. Richardson, (Ib., 323.)
Before examining the meirts of the position assumed by the Courts of this State upon precedent and authority, it is important to ascertain whether this is in fact an open question under the English and American decisions.
As the doctrine above stated is applicable only to the ease of a destruction of the premises by the act of God and the public enemies, it will be unnecessary to look into the great mass of cases,
In all these cases it has been held that the destruction of leased premises by fire, occurring through-accident or negligence, does not afford ground for relieving the tenant from the payment of rent. It is worthy of remark that in all these cases there is not one in which, so far as ajipears by the reports, the tenant put himself upon the distinctive ground of a right to rescind by an act of surrender. On the other hand, Baker vs. Holtzapffel was decided on the ground that there had been no steps taken by the tenant in order to make a rescission effectual. These cases are strong authority for holding that, during the continuance of the lease, no abatement of rent can be claimed by reason of injury to the leased premises by fire. It has been generally assumed, however, and perhaps not without reason, that their effect is to deny the right of the tenant to relief in any form in such cases.
It will not be necessary to enquire whether cases of the destruction of the subject-matter of the lease by negligent or accidental fire are distinguishable from, or stand as exceptions to, the rule that the destruction of the subject-matter of the lease by the act of God or the public enemies, works a dissolution of the lease at the election of the lessee. If it can only be regarded as an arbitrary exception, still strong reasons have been urged why relief should not be extended to such cases. Loss by fire is an ordinary risk that may fairly have been considered within the contemplation of the parties. The exercise of prudence and care, on the part of the tenant, who has control of the premises during the lease, may avert the danger, or at least diminish its injurious consequences. To throw the consequences of the loss wholly on the lessor, diminishes unduly the interest prompting the tenant to the exercise of that care due in his
To undertake, in such cases, to draw a line between accidental and negligent fires, would be impracticable, from the nature of the cause of inquiry.
We may, also, exclude from consideration, in the present connection, a class of cases in which the relation of landlord and tenant has been modified by covenants to maintain, support and repair, and to surrender possession of the premises at the end of the term in an agreed condition. Of these, 1 Dyer, 23, is an instance. In that'case one bound by his covenant to sustain and repair the banks of a water-course was held liable on his covenant for damage occurring through an extraordinary flood. In this case, although the defendant was a lessee, no question was made as to any diminished value of the leased premises; nor was any demand for rent involved.
Canal Nav. vs. Pritchard, (6 T. R., 750,) Bullock vs. Domitt, (6 Ib., 650,) Lord Chesterfield vs. Bolton, (Com. R., 627,) Arden vs. Pullen, (10 M. & W., 321,) Leeds vs. Cheetham, (1 Sim., 146,) and Phillips vs. Stevens, (16 Mass., 238,) are all cases of this class. In all these cases the rights of the parties depended upon the force and effect of covenants to repair, and, accordingly, they have no bearing on the question under immediate consideration.
Paradine vs. Jane, (Alleyn, 26; Sty, 47,) and Pollard vs. Schaaffer, (1 Dallas, 210,) involve a somewhat similar principle, but do not touch the present question. In both of these cases the complaint was that the defendant had been deprived of the possession of the leased premises by an alien enemy, and not that the subject-matter of the lease had been destroyed. The thing leased remained in existence still, although the lessee had incurred the personal misfortune of losing the advantage he had anticipated from it.
Hart vs. Windsor, (12 M. & W., 66,) Sutton vs. Temple, (12 Ib., 52,) and Smith vs. Marrable, (11 M. & W., 5,) are cases in the Exchequer at variance with themselves upon the question whether there is incident to a lease an implied covenant that the premises are fit for the purpose, for which they were hired. In Hart vs. Windsor, and Sutton vs. Temple, the existence of such an implied covenant was denied, wdrile in Smith vs. Marrable the tenant was relieved on the ground of a breach of such implied covenant. It
Edwards v. Etherington, and Cowie vs. Goodwin, approach nearer to the question in hand. Edwards vs. Etherington (24 Eng. C. L., 437,) also reported under the name of Edwards vs. Hethrington, in 16 Eng. C. L., 271, was a case where the premises became uninhabitable during the term, as a consequence of natural decay. The tenant elected to rescind, and returned the key to the lessor. The Court hold that he was entitled to be relieved, as he had lost the beneficial use of the promises without fault on his part.—Cowie vs. Goodwin (38 Eng. C. L., 162, 9 Car. & P., 378,) involved the samo principle and received the same solution.
Graves vs. Berdan, (26 N. Y., 498, S. C., 29, Barb. S. C., 100,) directly affirms the doctrine under immediate consideration. That was an action for rent of apartments in a building afterwards destroyed by fire. Emott, J., whose opinion, delivered in the Supreme Court, received the direct sanction of the Court of Appeals, takes ground that where the estate is gone, and the thing demised no longer exists, no rent can any longer be recovered. Tie applies this to the case in hand, holding that the destruction of the apartments was the total destruction of the thing leased, and concluded that the tenant ought to be discharged from the payment of rent. This conclusion was sustained on appeal. The opinion in the Court of Appeals states: “ That at common law, where the interest of the lessee in a part of the demised premises was destroyed by the act of God, so that it was incapable of any beneficial enjoyment, the rent might be apportioned.” This was the ground on which the judgment in the case rested. It is true the opinion branched out into collateral matter, tending to narrow down the ju’actical value of the rule; but, so far as .the case settled the law of New York, it carries it beyond the doctrine of the Courts of this State, as stated above, by extending it beyond the act of God and the public enemies to one of accidental fire.
Cass vs. Rudale (2 Ves., 280,) was not a case of landlord and tenant, but was a bill for a specific performance of a contract for the purchase .of houses, where it appeared that, after suit brought, the houses were destroyed by an earthquake. The Court decreed a specific performance. As the present question arises out of the peculiar contract that exists between landlord and tenant, Cass vs. Rudale can throw no light upon it.
Taverner’s case (1 Dyer, 56,) applied the principle in question, allowing the rent to be apportioned where there was a lease of land and. sheep, and the sheep died during the term.
From the foregoing review of the authorities on which those rely
Regarding, then, the question as an open one upon the adjudicated cases in England and this country, we will proceed to consider its merits more closely.
The question is two-fold :
1st. Where there is a substantial destruction of the subject-matter out of -which rent is reserved by a lease for years, by an act of God, or of the public enemies, may the tenant elect to rescind the lease, and, on surrendering all benefit thereunder, may he be discharged from the payment of rent?
2d. Whether the actual physical destruction of the property, the usufruct of which was contemplated by the lease, is essential to form a ground for rescinding the lease, or whether the destruction of the possibility of an usufruct, such as was contemplated by the parties to the lease, is sufficient ground for such rescission.
We believe it will be found that the better reason and the weight of authority lies on the side supporting the proposition advanced in the 1st question, just stated, as well as in the latter category of the 2d question, that the idea of mere .physical destruction has never been prominent, and that the possibility of a beneficial enjoyment, according to the clear intent of the lease, has been made the test of the integrity of the lease. Rent is defined to be a certain yearly profit in money, provisions, chattels, or labor arising out-of lands and tenements, iu retribution for the use. — 3 Kent’s Com., 460.
This definition, with very little difference in the form of statement, and none in its import and effect, is generally agreed upon. The existence of rent, therefore, presupposes land, and a possible usufruct, for there can be no just demand for retribution or compensation for that which does not exist. An agreement to pay rent, whether a simple contract, or a covenant in form, is controlled by the nature of rent. If the conditions under which rent accrues do not exist, there is nothing for either an agreement or a covenant to pay rent to rest upon. A corresponding definition of a lease was
On the other hand, the ordinary contract for the payment of money at a fixed time, or on a fixed contingency, must be defined in terms expressing quite a different intention. The consideration of a contract to pay money must be either a right or thing acquired, or an obligation capable, in intendment of law and by the process of law, of being turned into value. The consideration of a lease is not the possession alone of land, but possession with its profits. The lessor assumes no obligation that there shall be profits, nor can any process of law produce such profits.- The basis of the consideration is, then, an expectation of profits; all that the lessee gets being a right to .produce and take them if they exist. It may well be that the lessee takes all ordinary risks of loss. The real consideration is, therefore, in the nature of a power of limited control over the premises, and to take to his ovvn use the profits. This power, to answer the ends of the lease, must be upheld during the term. It may be destroyed either by the act of the lessor or of one claiming under him or against him, by title paramount, or by the destruction of the subject-matter of the lease through some agency not embraced in the risk taken by the lessee.
In the first case,'all are agreed that the tenant is entitled to relief. In the second case, the words “demise,” or “let,” or equiva
According to Rolle’s Abrid., 939, possession of the leased premises by the ICiDg’s enemies does not suspend the rent, and the reason assigned is, that by express agreement the lessee is bound to pay under all risks. The case here put does not imply a destruction of the subject-matter of the lease, but a mere interruption of the lessee’s enjoyment of it. Again, it is said, that if part of the leased land is overflowed by fresh water, the rent does not cease, but if overflowed by the sea, the right to rent to such part is gone. The overflowing by fresh water is not regarded as inconsistent with a several enjoyment of the land, though changed in the character and value of its profits; but the sea makes all that it covers common ; hence, in this case there is an actual destruction not physical — for
It must, therefore, be regarded that the principle contended for met the approbation of the Court. We have already seen that this principle was applied in Edwards vs. Etherington, and Cowie vs. Goodwin, and in these"eases carried beyond the limits contended for.
The note of a decision of Lord Mansfield, referred to by Buller, J., in the case of Belfour vs. Weston, (1 T. R., 312,) has relation to a case of burning by fire, in which case he says the landlord is not obliged to rebuild; but the tenant is obliged to pay rent during the whole term, has no bearing on the present question, as we have already seen. In Baker vs. Holtzapffel, (4 Taunt., 44,) which was an action for use and occupation of premises destroyed by fire, Lord Mansfield put the decision upon the distinct ground that the defendant had made no offer to deliver up the premises. This ease would lead to the conclusion that at that time it was not fuliy settled that a loss by fire conferred no right on the tenant to rescind. When the same parties came before Lord Eldenfor equitable relief, (18 Ves., 115,) he disposed of the case on the ground that there was no relief in equity in such a case beyond what the law afforded. Lord Northington, in. Brown vs. Quiller, (Ambler, 619,) says : “ The justice of the caséis so clear that a man should not pay rent for what he cannot enjoy, and that occasioned by an accident which he did not undertake to stand to, that I am surprised it should be looked upon as so clear a thing that there should be no defence to such an action at law.” This was said of the burning of leased premises by fire, and although it may have been inapplicable to the case in hand, is no mean support to the more general position contended for.
It is said in the note, at page 422 of 3 Saunders’ R., ( Walton vs. Waterhouse,) that if there is an express covenant to pay rent, tenant is bound to pay, though the premises be burnt or blown down. It is also said, in the same note, “ and as it appears from the before-
The doctrine contended for does not assume that the plea here stated to have been made in Paradine vs. Jane would be good. It is not the destruction of the buildings on leased land, whether by the act of God or the public enemy, that in itself constitutes the right to relief against the covenant to pay rent; but it is such a destruction as reaches to the subject-matter of the lease, or the thing that must be regarded as the consideration of the agreement to pay rent, that authorizes the tenant to elect to rescind, and it is only when this doctrine is made effectual, by the appropriate act of the tenant, that a bar to the action - of covenant is complete, which goes to the existence of the covenant. It is undoubtedly correct to say that blowing down, when caused by a tempest, stands on the same footing as destruction by public enemies; but the consequences of this admission are not necessarily such as were drawn by the learned Reporter, whose language is here given.
It will be useful to notice the remarks made by Tindal, J., in Izou vs. Gorton, (5 Bing., N. C., 501,) that “ the cases referred to in the argument, in which the tenant has been allowed to withdraw himself from the tenancy, and to refuse payment of rent, will be found to be cases where there has been either error or fraudulent mis-description of the premises which were the subject of the letfing, or where the premises have been found to be uninhabitable by the wrongful act or default of the landlord himself.” This was said in a case of destruction by fire of leased apartments subsequently repaired by the landlord, who brought his action for rent, and was allowed to recover. Tindal cites Baker vs. Holtzapffel, as decisive of the question, which decision, as has been already stated, rested on the fact that the tenant had not offered to surrender the lease. This citation is followed by the language quoted above, which goes beyond the necessities of the case, to intimate that there was no ground for a surrender in the case in hand. That the cases referred to by Tindal are not those that have been regarded as the leading cases on this subject, is evident, from the fact that none of them answers the description given by him. By confining this remark of Tindal to cases of destruction by fire, the case then in hand, it
In Taverner’s case there appears to have been a struggle between the inclinations of the common lawyers to dispose of such cases by an arbitrary rule, recommended by its simplicity and convenience of application, on the one hand, and the force of the inherent equity and justice of the claim of apportionment on the other hand, in which the latter prevailed. This is one of the cases to which Tindal ought not to he regarded as having referred, in the language quoted above.
The enlightened spirit in which the jurists, both of the common and civil law, have dealt with this question, is set forth by Chan. Walworth in Gates vs. Green, (4 Paige, 355.) He lays it down as a principle of natural law, “that a tenant, who rents a house or other tenement for a short period, and with a view to no other benefit except that which may be derived from its actual use, should not be compelled to pay rent any longer than the tenement is capable of being used.” He cites to the proposition the law of Scotland, the. Code Napoleon, the law of Louisiana and New Foundland. He also cites the authority of Puffendorf as supporting that view. He makes this judicious comment on Rutherford’s Institutes, 127 : “ Rutherford, in his lectures on natural law, makes a very sensible distinction between a casualty which destroys the value of the use of the property, which loss naturally falls on the lessee, and one which destroys the property itself; in which latter case, he holds that the lessee is excused from the payment of further rent.” If, instead of reading “property,” we read “subject-matter of the lease,” we will not change the sense of the terms employed. It would be an unwarrantable use of the word “ property ” to confine the idea conveyed by it to the land on which a building stands when the building communicates to the lease almost the entire value and interest covered by the word property. After referring to the efforts of some of the Chancellors of England “to introduce this principle of natural law into the administration of justice in their Courts,” Oh. Walworth adds: “ A contrary principle, however, finally prevailed in the Equity Courts of England, as well as in the Courts of common law, and it must now be considered as settled, both in England and in this State, (New York,) that a lessee of premises, which are burned, has no relief against an express covenant to pay rent, either at law or in equity, unless he has protected himself by a stipulation in the lease, or the landlord has covenanted
It was this view that Judge Col cock took in deciding Ripley vs. Wightman, and to which he cites the support of 6 Bacon, 50.
A more critical notice of the New York decisions is rendered important by the fact that the authority of Chancellor Kent is cited against the doctrine here contended for. That learned Chancellor says (3 Kent’s Com., 466): “It is well settled that upon an express contract to pay rent, the loss of the premises by fire, or inundation, or external violence, will not exempt the party from his obligation to pay rent.” If by the loss of the premises is meant only that which Rutherford describes as the “loss of the value of the use of the property ” to the lessee, then this authority is reconcilable tvith all that has here been said on this subject. If, on the other hand, we read the passage from Kent as saying that the destruction of the subject-matter of the lease is not, under any circumstances, ground for rescission, then wp involve the learned commentator in the inaccuracy of not being supported by the authorities on which he relies. The judicious character of his mind must convince us that he employed these words in the exact sense in which they stand; in which case he would be read as saying that it is no ground of relief for the tenant that he has lost the benefit that he contemplated in leasing the premises. Nor would the addition of the words “by fire, inundation or external violence,” compel an alteration of this reading; for it is possible for a tenant to lose the benefit of leased premises from either of these causes without there being such a destruction of the subject-matter of the lease as to warrant a rescission.
In Hallett vs. Wylie, (3 John., 44,) a case of injury by fire, Judge Van Ness states, “ that there is no case in the books where the destruction of the promises by fire has been held to excuse the tenant from the payment of the rent in an express covenant.” ITe goes on to state that every reservation of rent in a lease is to be regarded as
With the settlement of this question we have nothing to do at the present time, while the general course of the case, and the pointed concessions of the Court of Appeals, sustains the general doctrine we are attempting to elucidate.
In Fowler vs. Bott, (6 Mass., 63,) Judge Sewall says that a lease for years is a sale of the premises for the term. That, unless there is an express stipulation, lessor does not insure the premises against “inevitable accident, or any other deterioration.” He also says: “The rent is, in effect, the price or purchase money to be paid for ownership of the premises during the term, and their destruction, or any depreciation of their value, happening without the fault of the lessor, is no abatement of .his price, but entirely the loss of the purchaser.” Again, he says that, independent of some covenant, the destruction or injury of the premises by fire, “or any other casualty,” is the misfortune of the lessee, and he is not excused from paying his rent. The attempt here made to assimilate a case of sale and one of hiring, as to all their incidents and consequences, seems not only unnecessary, but liable to be carried out into consequences calculated to destroy the common law idea of the relatiou of landlord and tenant. Judge Evans, in Corley vs. Kleckley, (Dud., 35,) made, it is conceived, a more judicious use of the points of similarity between these two transactions, when he traced the same consequences to both, as it regarded the question of what condition of unsoundness, at the time of the contract, would warrant its rescission. This is as far as it" appears safe to run the parallel. The statement placing “any other casualty” on the same footing with fire, while not essential to Judge Sewall’s argument, needs to be subjected to a more careful limitation, in order to bring it within the decided cases of England, as we have already soon.
Unless something of importance has been overlooked in the foregoing citations, it cannot be doubted that, in case of substantial
What, then, should be regarded as a substantial destruction ? It is said, in Doe ex dem. Freeland vs. Burt, (1 T. R., 701,) by As-hurst, J., that “ the construction of all deeds must be made with reference to the subject-matter, and it may be necessary to put a different construction on leases made in populous cities from that on those made in the country.” In that case, a lease of a yard to a tenant of apartments was held not -to carry with it vaults underneath the yard, notwithstanding the principle of the common law, that the ownership of the soil carried all above and below it. The ground of this decision was, that, construing the lease by its subject-matter, it was obvious that the parties intended otherwise.
This principle is directly applicable. If parties contract with reference to the occupation of a dwelling house, the destruction of that dwelling house is clearly the destruction of that which they had in view, and wras the basis and consideration of their contract. To say that the few feet of barren land on which it stood, incapable of any production worthy of consideration, is sufficient to answer the intention of the parties, to satisfy the justice and equity of the contract, as well as its terms, is to say what no jurist has yet ventured broadly to affirm. The only difference between leases in compactly built cities and in the country is, that, in the one case, the principle is more clear and evident in its application than in the other. The ground of distinction must be the fact that the structure bears such relation, in point of fitness and value for the use contemplated by the lease, as to give rise to the conclusion that the buildings tvere the main element of the consideration on which the agreement to pay rent was based. Such a conclusion is in accord with the sense of justice by which the mass of the people are influenced; and one reason why questions of this character are, after all, so few in number among the reported cases, is, that the sense of justice has influenced the public mind to such an extent as to bring them to a reasonable solution without an appeal to the Courts.
It has long been felt that the application of the common law ought to yield results more in accordance with the habits and ideas of the people, in this respect, and it is apprehended that, if approached in a constructive as well as a critical spirit, its doctrines and principles will be found, in all respects, compatible with the growth and tendencies of the civilization which has been fostered by it.
It is not necessary to inquire whether sufficient ground existed for a rescission, for it does not appear that the defendant took any measures to rescind the lease. It is said, in behalf of the defendant, that the possession of the premises, subsequent to the military occupation, ought to be ascribed to the consent of the military authority, and not to be considered as a holding under the lease. If, under any circumstances, a hostile military occupancy could operate to extinguish the lease, still it would be necessary for the defendant to make it to appear that such occupation was in invitum. For aught that appears, the defendant may-have abandoned the premises, without sufficient cause, to the military force.
It is sufficient for the purposes of the present case to hold that the defendant, not having established a rescission of the lease, has shown no sufficient bar to the plaintiffs’ demand.
The motion for a new trial must be denied.
Reference
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